A pre-revenue hardware startup that successfully Kickstarted a genuinely innovative music instrument just reached out. They're about to ship first units, launching pre-sales, sending demo units to influencers, and restarting ads, all in the next month or two. They want someone to take on most of the launch strategy and execution: influencer outreach, ad management, content direction, the works.
The offer is 1% equity and 15% sales commission during the launch window, with potential to continue longer term if it's a good fit. No cash retainer because the budget is tight until revenue starts coming in.
The product is real, has press coverage, a patent-pending design, and big name demos tentatively lined up. The founder seems sharp and is being transparent about the finances.
Questions for anyone who has experience with this:
Is 1% equity reasonable for a essentially a fractional CMO role at this stage, or is that low given the risk?
Is 15% commission on hardware sales enough, or does hardware margin make that harder to sustain than it sounds?
How do you protect yourself when "tight budget until revenue comes in" is the starting condition?
Would you take it, structure it differently, or pass?
Equity + commission instead of cash for a launch role, fair trade or red flag?
byu/colossuscollosal inEntrepreneur
Posted by colossuscollosal
5 Comments
Just a gut reaction, but 1% equity feels a little low for basically handling launch.
15% commission sounds good, but iv’e heard hardware margins can get tight fast.
Commission makes sense for launch, but equity only works if you believe in company long term. Otherwise, you are basically taking startup risk for freelance work.
Garbage offer and you know it.
You can answer if the commission is right or wrong but 1% for pre market without cash is low low low
I don’t know. Is the instrument good and can you keep it?
Honestly, I’d treat this as a bet, not real pay.
1% equity is not terrible, but for owning most of the launch, it feels light unless the commission is very clear and easy to track.
The real risk is doing senior-level work for free while they can still change priorities, timelines, or what counts as a sale later.
I’d only consider it if everything is in writing and the deal shifts into actual cash compensation once revenue starts coming in.